Bulletin: NY000019

Dear Associates:

In past years it has been the policy of the title industry not to insure against Mechanic Liens where priority has been lost due to the nature of the recording statute or where a lien from paid bills for labor or materials could supersede the lien of the construction lender. Recently, many underwriters including Stewart Title Insurance Company have paid losses resulting from mechanic's and materialman's liens obtaining priority over insured construction loans. Accordingly, in all cases where there is lost priority or when mechanic's liens have obtained statutorily or judicially determined priority over the proposed insured construction loan you must obtain written prior approval to insure against these liens from our Underwriting Department.

In the event you have any questions concerning the above or if I could be of further assistance with regard to same, please do not hesitate to contact me at your earliest convenience.